FedEx Strategies Accelerate With Covid-19

The business strategies that FedEx outlined have accelerated with the Covid-19 pandemic.

«Although our strategic course at FedEx was mapped long before Covid-19 came on the scene, in many ways the world sped up to meet our existing strategy,» the company said.

The e-commerce growth that the company anticipated for a few years occurred in a few months, and e-commerce as a percentage of the U.S. retail market increased from 16% in calendar year 2019 to 27% in April 2020.

Thus, this growth underscored the importance of  the company’s business initiatives that directly address the inherent challenges of the e-commerce market, including seven-day FedEx Ground operations, home delivery of large and bulky items via FedEx Freight. Direct and SmartPost volume integration to increase density.


From a company perspective, the flexibility and automation of the FedEx Ground network made it possible to react quickly to the challenges faced by e-commerce shippers due to inventory imbalances and an increase in fulfillment from the store.

Additionally, the network-wide deployment of Dynamic Route Optimization technology, which provides service providers with near real-time data to plan the best routes and respond to local market trends, has continued during the pandemic and would have been completed. ahead of the 2020 holiday shopping peak season.

«The strategic steps we are taking to manage yields and improve efficiencies in our operations, specifically the last mile, will position FedEx Ground for industry-leading sustainable margins,» the company projected.

«To make expensive last mile deliveries more efficient, we are also continuing successful collaborations like Last Mile Optimization, now launched in 57 source markets,» the company added.